Suggestions for the Modernization of the State

This study examines the modernization of the state in Peru during the 1990s, focusing on the transition from an interventionist state to a more efficient one that acts as a regulator and provider of infrastructure. The research addresses the impact of structural reforms in areas such as taxation, trade, labor, and finance. Despite some progress, the process of privatization and rationalization of public spending has shown slow down and inefficiencies. The study analyzes key areas where the state should intervene, such as the provision of public goods, the regulation of externalities, and the promotion of social equity. The methodology employed includes an assessment of spending efficiency and the government’s institutional structure. The results suggest that state intervention should be limited to areas where the market fails, promoting private-sector participation and prioritizing social spending. The policy implications point to the need to redesign public administration, merge ministries, and create a regulatory framework that improves the quality and scope of public services, particularly in education and health. (Abstract and audio: Department of Economic Publications)